In a thriving art market, investors making changes to their collections understandably might want to save tax dollars by structuring like-kind exchanges. But the lack of specific guidance regarding the definition of like-kind art and other collectibles — and the unusual nature of collectibles transactions — clouds the applicability of Section 1031 to such arrangements. This article suggests that tax advisors can create structures that will help such transactions come within the qualified intermediary safe harbor, while keeping in mind that many positions an owner might take with respect to like-kind art or other collectibles are subject to challenge.

The BLS Library has in it collection The Antique and Art Collector's Legal Guide: Your Handbook to Being a Savvy Buyer by Leonard DuBoff (Call #KF4288 .D825 2003), a guide to the legal aspects of art collecting and the antiques business cover such topics as purchasing collectibles, authenticating works, insurance, security systems, investments, and conservation and restoration. Chapters include: Acquisition and protection -- Getting started -- Purchasing and reselling your collectibles -- Due diligence on purchase and/or sale -- Authenticating the work -- Inventory and insurance -- A guide to protecting your home and collection from theft -- Investments -- Conservation and restoration -- Specific legal issues -- Copyright -- When rights collide -- Tax considerations -- Import and export restrictions for the collector -- When your artwork is held by others.